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K.S. Badri Narayanan

Idea Cellular (61.85): Despite the sharp fall, the stock maintained its upward momentum last week. It now finds crucial resistance at Rs 63-64.

Only a close above Rs 64 could lift it to Rs 76. On the other hand, if trend reversal happens it could touch Rs 48-49, though in between Rs 57-58 could act as a strong support.

F&O pointers

The Idea Cellular futures (lot size 2,700) saw a higher rollover of 35 per cent. It now rules in discount, suggesting that a fair amount of accumulation could have happened on the short side. Besides, the Idea Feb futures are quoting slightly lower than Jan futures, indicating rollovers may have been on the short side. Options trading provide little cues.

Strategy: Traders can consider selling Idea Cellular Feb futures keeping the stop-loss at Rs 64, if the stock opens on a weak note.

Traders could consider booking profits at Rs 58.

If it falls below than that, traders can consider holding the position and aim for the next target of Rs 48 with suitable adjustment in stop loss to protect the profit.

Ispat Industries (20.55): The outlook for the stock turned negative as it could not sustain on its recent gains. The stock faces strong resistance at Rs 23 and has a major support at Rs 17.

A fall below the support could weaken it to Rs 14.3 and later to Rs 10.5.

The stock is under trading ban in the F&O segment as market-wide open interest crossed the maximum 95 per cent limit.

Strategy: Consider going short on Ispat Industries (market lot 12,450) with a stop-loss at Rs 22, if the stock opens on a negative note. Traders can book profits at Rs 17.

Last week, we had suggested short straddle on Suzlon (for three days) and a short on Shree Renuka Sugars. Both the strategies ended on a profitable note.

Feedback or queries (on positions) may be sent to f&o@thehindu.co.in. Replies will be published in the Monday.

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